Apple Pay

Apple Pay: the new digital wallet technology that makes payment transactions faster and more secure, in-store and online. But what is Apple Pay? How does it work? How can it be integrated into card-present and card-not-present transactions?

How does Apple Pay work?

Both in-store and in-App payments work with Apple’s Wallet app (previously known as Passbook).  Customers input their credit and debit card information into Wallet, and Apple generates a unique Device Account Number for each card. The Device Account Number is encrypted and stored on the Secure Element Chip*, and used in lieu of credit card numbers during transactions. Once card information is stored within Wallet, customers can use Apple Pay in brick-and-mortar stores or within mobile apps.

How does Apple Pay in-store work?

Apple Pay has eliminated the need to haul around an overstuffed wallet or a heavy purse because customers can now purchase items in-store using just their iPhone or Apple Watch. When using Apple Pay in-store, customers need only place their iPhone or Apple Watch near a Tap-enabled POS system, and authorize their payment using the iPhone’s Touch ID (finger-print scanner), or double-clicking the side button on the Apple Watch.

Integration of Apple Pay in-store is simple. Merchants need only be equipped with a POS terminal that is contactless (tap to pay) enabled. If your POS terminal is not tap enabled, contact your account representative to have your POS terminal setting changed to be able to accept Visa, MC, Amex, and Interac contactless transactions.

What is Apple Pay in-app payments?

In-app payment is a checkout system designed specifically for ecommerce businesses equipped with mobile apps. In-app payments only apply to business selling tangible goods, and should not be confused with in-app purchases, which sell premium virtual content within an app.

Similar to in-store payments, purchases are authorized using Touch ID. In addition to card information, the Wallet app allows customers to pair cards with shipping information. If a shipping address is paired with a card, Apple Pay will automatically fill in the shipping information during the checkout. These features are intended to help customers make purchases quickly and hassle-free.

To use in-app payments, merchants must work with a processing company like Moneris.  Merchants have the option of processing transactions via an API or a SDK.  More information on the differences between these methods of processing transactions can be found in the Apple Pay Overview.

Is Apple Pay safe?

Apple Pay leverages 3 levels of security, including Apple’s innovative biometric (fingerprint) authentication, which may make it more secure than using a traditional credit card and PIN. With these numerous safety features, customers feel safe buying in-store and in-app.

  1. Card Number Security:
    • Card numbers inputted into Wallet are immediately assigned a unique Device Account Number, which is then encrypted and stored on the Secure Element Chip.
    • The Device Account Number is used instead of a card number during transactions, ensuring card numbers are never shared and therefore never stolen.
    • The Device Account Numbers are useless if they are stolen because each number can only be used with the specific device it is registered on.
  2. Biometric Authentication:
    • Purchases are authorized using Apple’s Touch ID (fingerprint scanner) ensuring only the owner of the device can authorize a purchase
  3. Lost or Stolen Phones:
    • Though Touch ID renders the iPhone useless as a payment device in someone else’s hands, lost or stolen phones can be put into “lost mode” or completely wiped using the Find my Phone app, further guaranteeing phones cannot be used to make unwarranted purchases.

Not only do these features make purchasing safer for the customer, but liability is diminished for merchants because Sensitive Authentication Data is not used, and therefore cannot be compromised.

How much does it Cost?

The cost to install In-App payments onto an app is included in in Moneris’ ecommerce package.  Apple does not charge an extra fee per transaction, so all transaction fees will remain at the card companies’ stated rate.

Which Cards and Banks Support Apple Pay?

  1. Cards
    • American Express
    • Interac
    • MasterCard
    • Visa
  2. Banks
    • BMO
    • RBC
    • ABT Financial
    • Canadian Tire Bank
    • CIBC
    • TD
    • Scotiabank

Why should you use in-app payments?

In-app payments are much faster for the consumer than the traditional checkout method, and they are more secure for both consumers, merchants, and developers. Because of these unique features, completed transactions with in-app payments are nearly 2x higher when compared to traditional checkout methods.  In addition, users of In-App payments have seen rises in repeat purchases and customer loyalty.

*Secure Element Chip is only present on Iphones 6, 6s, 6SE; and Ipads Mini 3 and 4, Air 2, and Pro